Update about war-affected assets in Ukraine (April)

Debitum has collected the latest information and data (on the 1st of April) about Loan Originator’s “Chain Finance” borrower and its war-affected assets in Ukraine.

On the 1st of April, the borrower accumulated in total 28 959 181,1 UAH (689 504.31 EUR @ exch. rate uah/eur of 42/1) in the dedicated bank account for Debitum investors. It means an increase of 4.264 mil UAH since the previous report in February.

The borrowing company continues to effectively manage the existing portfolio, working with existing customers or recovering financed cars. At the same time, the company has started financing new deals.

“Although there is a state of war in Ukraine, people continue to go to work, they have daily needs and to some extent, if you can say so, life has become more predictable in some spheres of life. We have closely observed and analyzed the situation and came to the conclusion we can start serving new clients and financing new deals. Of course, we have a strict risk assessment model in place (relevant to our country and current situation), which means we finance assets that are as far as possible from the war zone, both geographically and economically. The pace must be slow, and we must act cautiously with issuing new loans. We are sure that this is the right way to not only exist but also to develop the company and repay Debitum and our investors’ investments,” reveals the borrower company representative.

As we already have informed, on the 19th of February 2023 Martial Law in Ukraine was extended for 90 days. Therefore:

• the situation with repayments to investors hasn’t changed – even collected funds due to the situation business-related funds transfers from Ukraine to other countries are prohibited (including Latvia)
• No principal or interest repayments for claim rights will happen during Force Majeure caused by the war situation in Ukraine.
• Penalty interest will not be applied as a reason for delayed payments in the Force Majeure situation stipulated in the agreement.
• Borrower accumulated funds will be distributed equally to all involved investors after the Force Majeure end or when another solution will be found on how to access the capital of the Ukraine borrower.

We will continue to follow the situation, collect the latest information, and keep you informed.